Life Events

There are special tax benefits to members of the U.S. Armed Forces. If you or someone you know is in the military, prior to filing a tax return it makes sense to review your situation. Outlined here are some of the more common items that may be excluded from your taxable income. Read article

If you're going through a divorce, taxes may be the last thing on your mind. But divorce involves many potential tax traps and pitfalls. Here are some things to watch out for. Alimony and child support. Alimony is taxable income to the person who receives it and deductible by the person who pays it,... Read article

When natural disasters occur, they often leave many people with severely damaged or destroyed homes and businesses. Some lose everything they own. If you are affected by a disaster that is declared by the President to qualify for federal assistance, there are several provisions in the tax law that may help. Read article

Use the following financial checklist if you find yourself considering divorce. This list is not all-inclusive and is no substitute for the professional assistance of your accountant and attorney. Read article

The death of a loved one is a stressful event. In addition to the emotional turmoil, survivors must deal with a number of financial and tax issues, some of them mundane and some quite complex. Here's a quick guide to help you through this difficult time. Read article

On August 29th, the IRS issued IR 2013-72 that implements federal tax outcomes from the June 26 Supreme Court decision regarding the Defense of Marriage Act. Here is what you need to know. Read article

Military personnel and those that support them have a number of special provisions built into the tax code just for them. If they apply to you, there may be some tax savings in your future. Read article

Have you recently married, divorced, or lost a spouse? A change in marital status should prompt a review of financial matters, but at such a time it is easy to overlook the details. Here are a few reminders and suggestions. Read article

Couples often enter into marriage without having had a serious discussion about financial issues. As a result, they find themselves frequently arguing about money. If you are planning a wedding, here are some steps you can take to get your marriage off to a good financial start. Read article

There is a fairly large tax exclusion on the gains made when selling your main home. While the gain may be large enough to avoid worrying about the tax consequences, if done wrong you could be saddled with a large tax bill. Here is what you need to know. Read article

A Matter of Income

If you're like some taxpayers, you have a pastime that brings in cash but produces a loss after you deduct your expenses. The tax code creates disadvantages for hobbies over businesses. Here is what you need to know. Read article

Don't ignore the impact of taxes on your investments. While taxes should not drive your investment strategy, understanding how taxes affect your earnings will help you minimize taxes and maximize your return. Read article

There is a fairly large tax exclusion on the gains made when selling your main home. While the gain may be large enough to avoid worrying about the tax consequences, if done wrong you could be saddled with a large tax bill. Here is what you need to know. Read article

Effectively using your investment losses can make a big impact in your taxable income. These losses could offset income that is barely taxed, or it could offset income taxed at 39.6% or higher! Here are some ideas to make those losers into winners on your tax return. Read article

A big surprise can occur when you see your Social Security Retirement Benefits being subject to income tax. This "tax torpedo" is often triggered by Retirement Account distributions. Are you prepared for this? Read article

In 1986, a tax law was introduced to block parents from transfering investments to their children as a technique to lower their taxes. This law, commonly known as the kiddie tax, ensures that this unearned incomeis taxed at a parent's, usually higher, tax rate. But there is still a tax planning opportunity. Read article

Year end moves by mutual fund managers often cause tax obligations for their fund owners. These surprises come in the way of 1099 DIV and 1099 B tax forms. Here are some ideas to help manage the problem. Read article

Deductions & Credits

Tax credits are one of the most powerful ways to lower your income taxes. A tax credit reduces your tax bill dollar for dollar. A tax deduction, on the other hand, only reduces your taxable income, so your benefit is determined by your tax bracket... Read article

Health savings accounts can be used to build tax-sheltered nest eggs that can pay out-of-pocket medical expenses with tax-free dollars. Here is how you can take advantage of this tax opportunity. Read article

Are you getting the tax break you deserve? Most taxpayers often overlook and under-report their contributions on their tax return. And the Treasury Department is not looking to help ensure you are fully reporting your charitable giving. So what can you do... Read article

In some rare cases, making a tax savings move can benefit you in more than one way. This is the case with direct contribution of qualified investments, such as stock, owned more than one year that have appreciated in value. Read article

If you donate a used vehicle to charity, you are allowed to take a tax deduction for your generosity as an itemized deduction. Determining the amount you can deduct is not as simple as you might think. Read article

The Earned Income Credit is one of the most common ways Americans reduce their tax bill. Yet per the IRS, 1 out of 5 people who could qualify for the credit do not file for it. Here are answers to some common questions. Read article

There is a lot of confusion on the topic of home equity loans following the passage of the Tax Cuts and Jobs Act (TCJA). The act changes the rules on whether the interest on these loans is deductible. So is it? Read article

Employees' ability to deduct unreimbursed expenses related to their job is going away under the new tax reform laws. Employers can consider reimbursing employees directly and deducting the cost from their business returns. Read article

Charitable contribution deductions are still a great tax savings tool, but they now require more planning following the passage of the Tax Cuts and Jobs Act (TCJA) last year. Here are some tips to save the most. Read article

The Healthcare Marketplace allows open enrollment each year to obtain health insurance. If eligible, you may also receive a reduction in your insurance premium by use of a Premium Tax Credit. Should you apply the credit now or wait and receive the credit on your tax return? Here is what you need to know. Read article

Tax Savings Ideas

Over the past few years, the IRS has started penalizing late filers of Sub S Corporation tax returns. This despite the fact that late filing of the Sub S tax return does not typically impact the timely payment of the tax. Read article

Are you planning to use your vacation home soon? If you're not going to use it, have you considered renting it? Here are some great ways to enjoy tax savings through use of a vacation home. Read article

The earlier the better when it comes to adopting a strategy to reduce your taxes. But even if time gets away from you, there are some year-end actions you can take to cut your taxes. Here are some last-minute tax cutters you might consider. Read article

Frequent tax law changes have made the tax code very complicated; only the informed taxpayer can take advantage of tax-cutting opportunities that remain. Here are some suggestions you should consider if you're interested in cutting your taxes. Read article

If you want certain individuals to receive property from your estate, there may be advantages to making those gifts while you are still alive. Consider these facts about making lifetime gifts. Read article

Tax law changes so frequently that you must be concerned with tax planning year-round, or you'll miss opportunities to lower your tax bill. Here are some of the more common areas that can reduce your tax bill. Read article

Home equity debt is often seen as a nice way to deduct interest on your tax return. But if not fully understood, what you thought would be a nice itemized deduction could result in a surprise increase in your annual tax bill. Read article

All too often taxpayers take action that will cost them dearly when they file their tax return. With a little planning, the IRS will receive their fair share, but not a dollar more, due to ingnorance of tax laws. Read article

Here is a simple idea to avoid late payment penalties if you miss a quarterly estimated tax payment (form 1040 ES). While it might not apply to everyone, it could save you some money come tax time. Read article

Every year thousands of taxpayers go through a "gotcha" with the IRS. A large, unexpected tax bill. Here are five common causes of tax surprises from lost refunds to retirement plan mistakes. Read article

Tax reform was passed by Congress this week and is expected to be signed into law soon. Most of the new laws take effect for the 2018 and 2019 tax years, but there are a couple items that you need to know about right away for your 2017 taxes. Read article

Each year select clients must withdraw minimim amounts from their qualified retirement plans. If you don't the penalty is a severe 50% in addition to paying regular income tax on the withdrawal. Don't let this happen to you. Read article

While it is not a good idea to tap retirement accounts prior to retirement age, sometimes it cannot be avoided. What can often be avoided, however, is the punitive 10% penalty for early fund distributions. Outlined here are exceptions to the 10% penalty rule for Traditional IRAs. Read article

Suppose you retire in a new state with warm weather and lower taxes. If you keep a part-time home in your original state or you later decide to return, you could have a tax problem. Here are some tips to help you stay on the right side of the state taxman. Read article

As you receive informational tax forms like W-2s and 1099s, you will want to make sure they are correct and received on a timely basis. Here are some tips to make this part of your tax filing experience smooth. Read article

You may have considered an individual retirement account (IRA) at some time in the past. But perhaps you didn't qualify for tax-deductible contributions, or you couldn't contribute much because you were a stay-at-home spouse. It might be time for another review. Read article

Most tax beneficial retirement accounts limit your ability to contribute to them after you reach age 70 1/2. But there are exceptions. Consider these account options if you wish contribution flexibility as you get older. Read article

Long-term care insurance has the same tax-favored status as regular health insurance. With the high cost of assisted living and nursing homes, this insurance product is becoming more popular. Is it right for you? Read article

The "baby boomers," Americans born between 1946 and 1966, are moving like a wave into their fifties and sixties. Unfortunately, between helping kids and parents, many of them are facing new financial pressures. Read article

Avoid Common Tax Filing Mistakes Want to ensure your refund gets to you in the shortest amount of time? Want to avoid a letter from the IRS? Here are some of the most common tax filing mistakes. Read article

A good way to create years of correspondence with the IRS is to cash a check received that does not match the amount you expect. When errors occur it can take time to straighten out the error. Read article

If the alimony you paid does not match the alimony income reported by the person who received the funds you can expect more attention from the IRS. A lot more attention. Here is what is happening. Read article

Retaining copies of your federal tax return is important. Not only will you need the return in case of audit, but the tax return is often used to secure student aid, obtain loans, purchase a home or business, plus much more. What can you do if you cannot find a copy of your tax return? Read article

What is the difference between a Marginal Tax Rate and an Effective Tax rate? Who cares? You might if you add a second job and see some of your tax benefits disappear. Here is what you need to know. Read article

This newly proposed postcard-sized 1040 form replaces the old 2017 1040, as well as forms 1040EZ and 1040A. While some in Washington are celebrating the design as a simpler way to file, a closer look tells a different story. Read article

In 2016, tax return filing deadlines are changing for some. If you have foreign bank accounts, expect to receive a Form K-1 from a partnership or LLC, or participate within a C-corporation you will need to know this information Read article

As part of recent tax legislation, the IRS is now mandated to delay sending out some refunds to taxpayers beginning with 2016 tax returns. If impacted, you will need to plan for this delay. Read article